Cos seek to recast Rs 50k-crore loans during April-October

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Pranav Nambiar: Mumbai, Dec 06 2012, 04:02 IST

In a sign of how stressed India’s corporate sector is, loans worth a whopping Rs 50,000 crore have been referred to the corporate debt restructuring (CDR) cell between April and October this year, on the back of R50,000 crore worth of loans having already been recast in the first six months of the year.

Last year, loans worth R39,300 crore were restructured as companies sought easier repayment terms from banks. October saw the largest quantum of referrals so far in 2012-13 at about Rs 14,000 crore. In September, loans worth R7,000 crore were brought to the cell. Among large corporates whose loans have been recast are Hotel Leela, Bharti Shipyard, GTL and HCC. The CDR cell rejected a request from Deccan Chronicle to restructure R4,000-crore loans.

Bankers say the cell received requests in November from at least six companies seeking more lenient terms, including a R1,500-crore loan of the Abhijeet Group. The Abhijeet Maharashtra Airport Development Company, Jai Hind Projects looking to recast R670 crore and Biltube Industries which owes banks R300 crore have been admitted to the CDR cell.

The largest case to be referred to the cell in October included the R10,829-crore debt of wind turbine manufacturer Suzlon Energy. Main lenders to Suzlon include lead lender SBI with an exposure of around R3,500 crore, IDBI Bank (R1,700 crore) and Bank of Baroda (R1,000 crore).

Bankers are in the process of finalising a bailout plan in consultation with the management.

New RBI guidelines on restructuring assets based on the recommendations of the Mahapatra

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